1. Five years ago, Marzi started a small manufacturing company. Last weekend she was reviewing the company's operational and financial data. She noticed that during the past five years the volume have been growing steadily. Average total and average variable costs, however, have declined during the first three years of operation and sharply increased thereafter. Not knowing economics, Marzi was unable to explain her findings. Explain the outcome to her and recommend a course of action based on these findings.